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  • Estate Management Procedures (EMP) – 2015

    HSIIDC

    Haryana State Industrial & Infrastructure Development Corporation Ltd.

  • Estate Management Procedures (EMP) – 2015

    (Amended up to 08.03.2017)

    Table of Contents

    Sr. No. Subject/ Title Chapter No.

    Page No.

    I Introduction - 1

    II Industrial Estates/ Parks and facilities 1 2-5

    III Pricing of Plots 2 6-8

    IV Allotment of Industrial Plots 3 9-17

    V Offer of Possession 4 18-19

    VI Period for Project Completion 5 20-25

    VII Surrender and Resumption of Plots 6 26-28

    VIII Leasing and Renting 7 29-32

    IX Transfer of Plots/ Sheds 8 33-39

    X Change in Constitution/ Shareholding 9 40-41

    XI Change of Project 10 42

    XII Bifurcation/ Fragmentation of Plot 11 43

    XIII Residual Matters 12 44-51

    XIV Allotment of plots to the SPV under Cluster Scheme 13 52-53

    XV Provisions for Technology park Projects 14 54-60

    XVI Provisions for Residential Plots 15 61-68

    XVII Group Housing Plots/ Sites 16 69-76

    XVIII Institutional Plots/ Sites 17 77-83

    XIX Commercial Sites 18 84-90

    XX Residential Sites/ Units for Industrial Workers 19 91-96

    XXI Copy of notification {ref. Para 3.2(i)(b) of EMP} - 97

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    Estate Management Procedures (EMP) – 2015 (Amended up to 08.03.2017)

    Introduction 1. The Enterprises Promotion Policy-2015 (EPP-2015) announced by the State Government vide

    notification No. 49/43/2015-4IB1 dated 14.08.2015, provides that the HSIIDC would revise

    its Estate Management Procedure in line with the economic environment and aspirations of

    the industry and notify its Estate Management Procedure to be known as EMP-2015 which

    would address the parameters for allotment, reservation and priority in allotment of

    industrial plots and other related matters concerned with management of industrial

    estates.

    2. In line with the policy decision of the State Government in this behalf, the Corporation had

    reviewed the Estate Management Procedures and the revised guidelines referred to as

    “Estate Management Procedures (EMP) – 2015” came into operation w.e.f. 16.10.2015.

    The "Estate Management Procedures (EMP)-2015" were further reviewed by the Board of

    Directors of the Corporation in its meetings held on 16.06.2016, 08.08.2016, 07.11.2016,

    24/25.01.2017 and 08.03.2017.

    Applicability

    3. The provisions of EMP-2015 shall be applicable to all the existing as well as future allottees

    of industrial plots/sheds as well as residential, group housing, commercial, institutional &

    industrial worker housing plots/sites, in various Industrial Estates / Industrial Model

    Townships (IMTs) developed by HSIIDC as well as Industries Department, Haryana,

    transferred to HSIIDC and shall be uniformly applicable w.e.f. 16.10.2015 unless otherwise

    specified in these procedures.

    All service requests to be received after implementation of EMP-2015, shall be dealt as per

    the provisions of EMP-2015, including charging of fee/processing fee, wherever applicable.

    As regards the pending applications, received before coming into force of EMP-2015, the

    same shall be considered to have been filed on 16.10.2015 i.e. the date of implementation

    of EMP-2015 and shall be dealt under the relevant provisions of EMP-2015 unless otherwise

    specified in these procedures. However, in all cases, the minimum investment criteria for

    prestigious projects shall be as applicable at the time of allotment.

    Notwithstanding anything contained in these procedures, all cases decided in the past as

    per earlier Estate Management Procedures(EMPs)/Policies, shall not be re-opened.

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    Chapter 1

    Development of Industrial Infrastructure and the Estates/ Parks

    1.1 HSIIDC has been given the mandate to develop Industrial infrastructure and thereby

    facilitate development and growth of industry in the State of Haryana. The Corporation has

    developed industrial estates / IMTs throughout the State in this process.

    1.2 In addition to the already developed Industrial estates/ Parks/ IMTs, the HSIIDC has plans

    for development of Industrial Parks at various locations.

    1.3 The process of development of Industrial Infrastructure necessarily involves acquisition of

    land, planning, execution of development works e.g. roads, water supply, sewerage system

    and electrical infrastructure. This is followed by provision of secondary level of facilities

    such as the STP/CETP, development of plantation/green belts, commercial and institutional

    sites, common parking facilities, etc. Indicative details of the amenities falling in different

    categories are given in Annexure-1.1.

    1.4 The scope and scale of amenities so provided may vary across the industrial estates

    depending upon the size of the estate and may not be uniform in all the Industrial Estates.

    The effort always remains to develop the basic infrastructure facilities required for start of

    construction activity in an industrial estate before initiating the process of allotment of

    industrial plots. However, there could be exceptions in strict adherence to this approach.

    These exceptional circumstances could arise from a number of factors such as:

    i) The HSIIDC may not be in undisputed possession of certain parcels of land on

    account of litigation which impede the completion of works at certain places;

    ii) There is overwhelming demand for plots pressing for early allotment and the State

    may lose out on the potential projects/ investment, if allotments are not made on

    immediate basis;

    iii) Certain applicants are in urgent/ immediate need of land and are in a position to

    start work on their projects without waiting for completion of these facilities.

    1.5 Further, there could also be a plan for phased development of the infrastructure facilities.

    For instance, it has been observed that the WBM roads provide unhindered access to the

    plots for carriage of construction material whereas the tar-felt roads get damaged during

    the spurt of construction activities. In addition to the problems associated with settlement

    of roads in the initial stages (at least one rainy season), frequent road cuts necessitated for

    cross-connections for water supply and sewage call for restoration of these cuts. It is

    keeping these conditions in view that the HSIIDC has planned for provision of the

    bituminous macadam after a gap of one to two years of the initial allotment. Similarly, the

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    infrastructure relating to drainage and sewerage works though an essential part of

    development, does not impede the start of construction activity. On the other hand, it is

    recognized that availability of access to the plots, water-supply and electrical

    infrastructure constitute the basic facilities for any entrepreneur to start working on his

    project.

    1.6 For the purpose of implementation of the EMP-2015, various industrial estates developed

    by the Corporation throughout the State are categorized as under:-

    Sr. No.

    Category Industrial Model Townships/ Estates/ Parks Developed by HSIIDC

    Industrial Estates developed by the Industries Department, Haryana

    1 ‘A’ Gurgaon, IMT Manesar, IMT Sohna, I.E./IMT Faridabad, Industrial Estate/EPIP Kundli, Rai, Bahadurgarh, Murthal, Sonepat, Panipat and Panchkula including the Panchkula Technology Park.

    IDC Gurgaon, IDC Panipat, IDC Bahadurgarh, IDC Hisar

    2 ‘B’ Barhi, Bawal, Karnal, Rohtak and Samalkha

    IDC Rohtak, IDC Karnal, Nelokheri, IDC Sonepat, IE Yamunanagar

    3 ‘C’ All Estates other than those mentioned above

    IDC Narnaul, RIE Mahendergarh, IDC Palwal, RIE Kaithal, RIE Barwala, RIE Fatehabad, IDC Ambala, IDC Pinjore, Kohand

    1.7 The above categorisation of estates may be reviewed by the Board of Directors of HSIIDC

    from time to time.

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    Annexure-1.1

    Different scale/ level of Facilities in Industrial Estates

    Primary level infrastructure

    It is incumbent upon the HSIIDC to provide following basic facilities at site in respect of the

    plot for which the possession is offered to enable the allottee to start construction of building :-

    Boundary wall of the entire Estate with gates & CCTV cameras

    Motorable Road for access to the site

    Water supply system i.e. availability of water connection at site for construction &

    drinking purpose

    Electrical Infrastructure comprising of the Distribution system network for construction

    purpose. The industrial grade supply shall be made available before grant of first

    occupation certificate

    Sewerage disposal Network

    Provision of security service in the Estate i.e. construction of police Station/Post

    building.

    HSIIDC as a developing agency understands that the above mentioned facilities are the

    basic minimum in order to term it as developed industrial infrastructure and which can be called as

    the Primary level facilities. There are a number of Secondary and Tertiary level facilities and

    amenities which may be required and which may need to be provided as add-on in due course of

    time depending on the growth of industrialization in the Estate. These have been identified as

    under:

    Secondary level Infrastructure facilities:

    Storm water/Drainage disposal system

    Sewerage Treatment/ CETP and disposal

    Convenience Shopping Facilities

    Idle Parking Spaces

    Green cover and Parks

    Solid Waste Disposal Sites

    Facilitate provision of Broadband services

    Food Courts (constructed) at strategic locations in the Estate.

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    Subject to force majeure, HSIIDC shall make available the Secondary Level Infrastructure facilities within a period of three years of implementation of projects by the allottees over 25% of total saleable area of the Estate. In case, HSIIDC fails to provide the secondary level infrastructure facilities in a time bound manner as defined above, the allottees shall not be liable to pay any extension fee for completion of the project till these services are made available at site.

    Tertiary Level Facilities*

    Communications/Telecom Services

    Post Office

    Banking

    Provision for Institutional sites

    Provision for Financial Market & Insurance

    R & D Centres

    Skill Development Centres

    Conferencing & Entertainment

    Exhibition & Display facilities

    Cargo Logistics Centres/ Custom-bonded Warehousing

    Petrol & Service Stations

    Social Infrastructure*:

    Industrial Housing

    Healthcare & Medical Attendance Services

    ESI Dispensary/ Hospital

    Schooling (if residential facilities are provided)

    Organised Transport Linkages

    The scale of facilities listed above are not provided by the HSIIDC in all the Industrial

    Estates. The provision thereof depends upon a number of factors such as the size of the Industrial

    Park, the plans and above all, the costs involved in what is to be provided. Some of the facilities

    come up during the course of growth of the Industrial Estate as and when the viability thereof is

    established. However, the HSIIDC commits itself to provide all such facilities as are factored in the

    pricing of the plots at the initial stage.

    * Provision of tertiary level facilities and social infrastructure is not the direct responsibility of the HSIIDC. In regard to certain facilities such as Banking, Telecom, Postal Services and ESI Dispensary/ Hospital etc. the HSIIDC makes provision for land but development is dependent upon the third parties. Similarly, distribution of power being with the Power Utilities, HSIIDC cannot provide a comfort regarding immediate availability of power connections and uninterrupted supply thereof. HSIIDC’s basic responsibility is limited to the erection of an efficient distribution system. Note: The amendments in EMP with respect to infrastructure facilities shall be applicable for estates to be

    planned/developed in future.

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    Chapter 2

    Pricing of Plots

    2.1 The pricing of plots in any industrial estate is a function of the cost of acquisition of raw

    land, administrative costs, survey and demarcation, payment of Government fees,

    planning, development and provision of various amenities like roads, water supply systems

    including the water-works, sewage, drainage, STP/CETP, final disposal of effluents, etc. as

    necessary infrastructure related amenities. The overall costs so incurred are then loaded

    on to the net saleable area.

    2.2 Normally, at the time of initial floatation of an industrial estate/IMT, the HSIIDC allots

    industrial plots on cost basis to the eligible applicants, however, in case the number of

    such applicants are more than the number of offered plots in any of the industrial

    estates/IMTs, the allotment shall be made through e-auction process. Thus, the HSIIDC

    generates revenue by way of allotment of plots as well as by way of disposal of

    commercial/institutional sites/residential plots. The revenue so generated by the HSIIDC is

    ploughed back in meeting investment requirements of the Corporation including for over-

    arching infrastructure facilities that improve the connectivity and means of transport in the

    State, cross-subsidising the plots in industrially less developed areas, as well as creation of

    future land bank. For instance, the Corporation utilized the revenue generated in the

    process for meeting the part-cost of acquisition of land for the KMP Expressway, NCR Water

    supply channel for bringing water to the IMTs/IEs, Metro Rail, linkages to Rail Freight

    Corridors etc. to name a few. The broad policy in pricing of plots is governed by the

    following considerations:

    i) Need has been felt to decongest the areas immediately surrounding Delhi and

    develop Industrial Estates in areas where industrial infrastructure has either not

    been developed so far or industrial development has not taken off with a view to

    dispersing the development of industries in a balanced manner. As such, pricing can

    be used as a mechanism to decongest the already congested areas.

    ii) Industrial plots may be allotted in the IMTs/ IEs for mega projects involving fixed

    capital investment of Rs. 100 crore or above, or projects involving employment

    generation of more than 500 persons, at special promotional rates, with the

    approval of the Haryana Enterprise Promotion Board (HEPB), so as to attract large

    size anchor industrial units at these locations with potential for creation of

    ancillaries. The pricing under this provision is decided by the HEPB on case to case

    basis. Further, preferably, not more than 15% to 20% of the plotted area is to be

    allotted under this special dispensation, any exceptions thereto resting with the

    HEPB.

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    2.3 Treatment of enhancement in the compensation paid to the landowners:

    A. Allotment of industrial plots/sheds made before coming into force of EMP-2015:

    The landowners whose land is acquired under the Land Acquisition Act, have a

    statutory right to file references under Section 18 of the Act seeking higher

    compensation as compared to what has been determined by the Land Acquisition

    Collector and paid to them at the Award stage. Notwithstanding the Government

    Policy of minimum floor rates, scheme of Annuity payments and the R & R Policy,

    the amount of compensation is often enhanced by the Courts of competent

    jurisdiction. A finality in this behalf is a long drawn process. As such, the pricing of

    industrial plots at the initial stage did not take into account any component of

    enhancement allowed by the court(s) subsequently. It is for this reason that the

    enhanced cost of the land announced subsequently by the competent court(s) was

    being recovered proportionately from the allottees separately as per the terms of

    allotment & applicable policy guidelines. The component of enhanced

    compensation shall continue to be passed on to the allottees of the industrial

    plots/sheds where the allotment has been made by the Corporation before coming

    in to force of EMP-2015, on proportionate basis.

    Wherever the litigation pertaining to enhancement in land compensation U/s 18 of

    the Land Acquisition Act is pending before the competent Courts/any such case is

    filed in future, the Industrial Association of the respective Estate/Allottees shall be

    made aware of the same, so that they can also defend the cases, if they so desire.

    Further, the allottees shall have the option to deposit the tentative enhanced cost

    during the pendency of the court case/raising of actual demand by the Corporation,

    so as to save the interest cost liability of the allottees.

    B. Allotment of industrial plots/sheds made after coming in to force of EMP-2015:

    In the Enterprises Promotion Policy 2015, announced by the State Government, a

    decision has been taken that no enhancement will be charged in respect of

    industrial plots/sheds to be allotted by HSIIDC in future. HSIIDC was mandated to

    formulate a suitable scheme in this regard.

    Accordingly, no enhancement will be charged by the HSIIDC in respect of the

    allotments to be made after coming into force of EMP-2015. In order to give effect

    to the above ‘No Enhancement Policy’ of the State Government, a fund named as

    ‘Enhanced Compensation Equalization Fund (ECEF)’ is being created at the State

    Government level to meet such liability in future. HSIIDC would be contributing to

    the said fund out of the sale proceeds against allotment of plots/sheds to be made

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    in future. However, the existing allottees who have been allotted plots before

    coming into force of EMP-2015 shall be required to pay enhanced cost on

    proportionate basis as per the terms and conditions of their allotment, against

    enhancement in land compensation awarded/to be awarded by the competent

    courts.

    2.4 Revision of Prices of Plots in various categories:

    The prices of plots/sheds shall be revised on 1st of April each year by the Board of Directors

    of the Corporation. The impact of enhancement orders awarded by the competent court(s)

    shall be taken into account before issuance of RLA. In case the highest bidder/applicant is

    not ready to accept the plot at revised rates arrived by adding such enhanced cost, the

    entire amount deposited by them shall be refunded including processing fee. However, the

    service tax portion of processing fee shall not be refunded.

    In case there is no demand in any industrial estate against two consecutive advertisements,

    with a view to maintain marketability of the plots, the Managing Director may consider

    downward revision of prices up to 20% at a time in line with the market price, on the

    recommendations of the Business Advisory Committee. For this purpose the Business

    Advisory Committee may avail the services of international consulting firms for advising on

    pricing of plots.

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    Chapter 3 Allotment of Industrial Plots

    3.1 The allotment of industrial plots/sheds shall be governed by the provisions contained

    under this chapter as amended from time to time to ensure quick disposal of unsold

    inventory.

    3.2 Reservation of industrial plots:

    i. The reservation of industrial plots shall be available as under:

    a) Up to 10% of the plots/sheds will be reserved in each Estate for allotment to NRIs/

    PIOs and for units with 33% or more FDI in total investment. In case of NRI Plots,

    the entire amount towards the price of the plot has to be remitted through NRE

    Account of the applicant or in remittances from abroad/ foreign exchange. In the

    case of FDI, at least 33% of the Project Cost has to come from the FDI route.

    However, the 10% limit would not preclude allotment of plots in the FDI category as

    a part of the general scheme of allotment;

    b) Preferential allotment up to 2% of the plots/sheds in each Estate has been

    prescribed by the Government for allotment to persons with disabilities as defined

    in the Persons with Disabilities (Equal Opportunities, Protection of Right and Full

    Participation) Act, 1995. The Government has also prescribed a differential rate

    of interest on instalments for this category (For complete details in this regard,

    Haryana Government Notification No. 49/40/07/4IBI dated 13.03.2007 may be

    referred). However, in case no applications are available from the eligible

    category, the un-allotted plots may be utilised under the general category.

    c) Any other reservation of industrial plots/sheds as may be decided by the State

    Government/HSIIDC from time to time.

    ii. Irrespective of number of industrial plots allotted under the above categories in the

    past, the number of plots reserved for future allotment shall be worked out on the

    basis of total number of plots available for allotment as on 30.09.2015.

    3.3 Subject to the above, the allotment of Industrial plots shall be governed as under:

    Categories of Allotment:

    a) Mega Projects involving fixed capital investment (i.e. land, building, machinery &

    misc. fixed assets) of Rs.100 crore and above or projects involving employment

    generation of more than 500 persons and serving as anchor units for proliferation of

    ancillaries.

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    b) Allotment under fast track scheme to Central/State Government PSUs;

    c) General, FDI/NRI and persons with disability category

    d) Any proposal for allotment of land to set up a project by any reputed foreign

    investor through 100% FDI route anywhere in the State, not falling under any other

    provision of EMP

    3.4 Process of Allotment:

    i. Mega/ 100% FDI projects by reputed foreign investors category:

    a) For Mega /100% FDI projects by reputed foreign investors, the identified land/plots

    measuring one acre and above size as per already approved layout plans will be

    offered for allotment through advertisement. 100% of the available plots of each

    sector / phase shall be offered for allotment in one go.

    b) Where any entrepreneur approaches the HSIIDC with requirement of a chunk of land

    (which can either the specific/identified site/plot(s) or just indicating the size of

    the land required), larger than the available size as per approved layout plan, in

    such cases, upon receipt of such project proposals from the applicant/investor,

    after initial scrutiny, the HSIIDC shall invite applications for allotment of such

    chunk of land through advertisement.

    c) Under both the above scenarios, a suitable time shall be given in the advertisement

    for submitting formal application as per procedure. In case, number of applications

    received are more than the number of offered plots in any plot size category or

    more than one application is received for a particular plot, allotment shall be made

    through e-auction in favour of the highest bidder; otherwise, the identified

    land/plot would be allotted to the applicant/investor through Higher Level Plot

    Allotment Committee/EEC at the price/rate applicable at the time of issuance of

    RLA.

    d) The allotment of industrial plots under Mega projects category involving

    concessional rates with other incentives (a customized package) shall be made by

    Haryana Enterprise Promotion Board under the Chairmanship of Hon’ble Chief

    Minister/Haryana.

    ii. General / NRI / FDI / Persons with Disability Category Allotment:

    a) The applications for allotment of plots under this category shall be invited through

    advertisement and 100% of the available industrial plots of each sector/phase shall

    be offered for allotment in one go;

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    b) Suitable time period shall be given for submission of applications. The process of

    allotment of industrial plots, in respect of applications received in a particular

    month shall be finalized preferably in the next two months;

    c) In case, the number of applications received in any plot size category are less than

    or equal to the number of plots offered, all the applicants may be considered for

    allotment by the industrial Plot Allotment Committee and where the number of

    applications are more, the allotment shall be made through limited e-auction

    amongst the applicants;

    d) The applications for allotment of adjacent carved out plots to the existing plot

    holders shall be received by the Corporation along with other general category

    applications through advertisement. In case the number of applications received for

    any plot size category are less than or equal to the number of plots offered for

    allotment, the allotment of adjacent plots in such cases, to the existing

    allottees/plot holders shall be made on preferential basis at the time of draw of

    lots, on the allotment price prevailing at the time of issuance of RLA. In case more

    than one adjacent existing allottees are interested in the same plot, the allotment

    shall be decided through draw of lots amongst such applicants. In case the overall

    number of applications received in that plot size category are more than the

    number of plots offered for allotment, the allotment shall be made through e-

    auction between the applicants.

    e) The allotment of unplanned pockets/strips of land, adjoining allotted plots shall be governed as under:

    a. The applications for such land pockets shall be accepted from the adjoining plot holders through on-line mode against advertisement only;

    b. Before including the unplanned pockets/strips of land in the advertisement, the Planning Division of the Corporation shall certify that such pocket cannot be put to some other effective use by the Corporation or separate plot(s) could not be carved out of such unplanned pocket and allocate a distinct number to identify its location.

    c. Other process of allotment prescribed under EMP shall be followed in such cases also. In case, only one adjacent allottee applies against a particular plot/site, the allotment shall be made to such applicant on the prevailing allotment rate. In case, more than one adjacent unit/plot holders have applied for the same plot/site, the allotment shall be made through limited e-auction amongst such adjacent units/plot holders.

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    iii. Central/State Government PSUs Category:

    a) The allotment of industrial plots to set up permissible projects by well-known

    Central / State Govt. Public Sector Undertakings, shall be made on fast track basis.

    The applications for allotment of plots under this category shall be received by the

    HSIIDC on on-going basis.

    b) The allotment under this category shall be made by MD/HSIIDC at allotment rate

    fixed/revised from time to time.

    iv. Specific Industry Clusters Category:

    In case the HSIIDC receives proposal from any cluster/group of industrial units

    falling under a particular industry category seeking allotment of land for setting

    up/re-location of their units engaged in a specific trade, in HSIIDC Industrial estates

    as a cluster, involving aggregate investment of at least Rs.100 crore, the HSIIDC

    may carve out a special cluster for such industrial units. The procedure for

    allotment of industrial plots in such cluster shall be the same as for general

    category allotment.

    v. For allotment of industrial plots under all the above categories, the land

    requirement shall be justified and the value of land shall preferably not exceed 60%

    of the total fixed capital investment (Land, Building, Plant & Machinery and Misc.

    Fixed Assets). Further, the investment in plant & machinery shall not be less than

    20% of the total fixed capital investment and the project proposed to be setup shall

    be falling under the permissible activities.

    vi. In case the applicant who gives the highest bid under e-auction allotment scheme

    of the Corporation, but does not accept the allotment, the entire amount deposited

    by him towards the application money along with the application i.e. 10% of price

    of the plot at the reserve price shall be forfeited. Further, where the number of

    applications received are less than or equal to the number of offered plots and the

    allotment is made at the reserve price, in those cases also, if the applicant does

    not accept the allotment after issuance of RLA, the entire amount deposited by him

    towards the application money shall be forfeited. (The amendments in this clause have

    been approved by the Board in its 336th meeting held on 25.01.2017 and are applicable

    prospectively for applications to be invited in future)

    3.5 Committees appointed for the purpose:

    i) For Mega projects having fixed capital investment (land, building, machinery and

    misc. fixed assets) of Rs.100 crore & above or projects involving employment

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    generation of more than 500 persons and serving as anchor units for proliferation

    of ancillaries, seeking allotment of plots at concessional rates with other

    incentives (a customised package), allotment of industrial land/ plot shall be

    made by the Haryana Enterprise Promotion Board (HEPB) under the Chairmanship

    of Chief Minister, Haryana.

    ii) Allotment of Plots to (i) mega projects, without any concession and (ii) 100% FDI

    projects by reputed foreign investors as mentioned at 3.3(d) above shall be made

    by the Executive Empowered Committee under the Chairmanship of Principal

    Secretary to Chief Minister, Haryana or the Higher Level Plot Allotment Committee

    comprising of the following members:

    1 Administrative Secretary of the Industries Department

    Chairman

    2 MD/ HSIIDC Member- convenor

    3 MD/HFC Member

    4 Director, Industries Member

    iii) For categories of applications received under para 3.3.c above, the Committee will

    be as under:

    1 MD/HSIIDC Member

    2 MD/HFC Member

    3 Director of Industries, Haryana Member

    4 MD/HARTRON Member

    Note: The Senior-most member will act as Chairman of the Committee. At-least one member, besides MD, HSIIDC should be present in all meetings to complete the quorum. Substitution can be made in extreme exigencies with an officer of the concerned Department /Organisation.

    3.6 Payment Terms

    i) 10% of the tentative price of the plot along with the application as earnest money

    (non-refundable in case of successful applicants in terms of clause 3.4(vi) above;

    ii) Balance towards 25% price of plot (after adjusting earnest money) within a period

    of 30 days of issue of RLA (date of issuance of RLA to be excluded), further

    extendable for 30 days with interest @ 13% p.a. for the extended period;

    iii) In the event an allottee fails to make payment mentioned at ii) above, within 60

    days period (date of issuance of RLA to be excluded), the RLA shall automatically

    lapse and the amount deposited by the allottee towards application money shall be

    forfeited. (The amendments in this clause have been approved by the Board in its 336th

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    meeting held on 25.01.2017 and are applicable prospectively for applications to be invited

    in future);

    iv) No interest will be payable in cases where the allottee makes the total balance

    payment in lump-sum within a period of 60 days of issue of Regular Letter of

    Allotment (RLA), date of issuance of RLA to be excluded. As an incentive to such

    allottees, a rebate of 3% on 75% of principal cost of the plot, shall be admissible;

    v) In case the allottee does not opt to pay full cost of the plot in lump sum within

    sixty days, the remaining 75% of the tentative price of the plot is to be paid in eight

    equal half-yearly instalments due on 30th June & 31st December. In case, at any

    stage, the allottee clear the outstanding plot cost dues in lump sum, a rebate of 3%

    on such outstanding (principal portion) cost of the plot, shall be admissible;

    vi) Interest @ 11% p.a. shall be charged on the balance outstanding after ‘offer of

    possession’ of the plot/shed. Default in payment of instalments shall entail

    payment of delayed interest @ 13% p.a. for the defaulted period on the amount in

    default, compounded half yearly;

    vii) In a case where the allottee approaches HSIIDC for taking over physical possession

    of the plot in an area of which possession has not been formally offered on account

    of non-completion of basic infrastructure development works, the same may be

    allowed subject to the allottee furnishing an undertaking in the prescribed format

    that he would not raise any claims against HSIIDC on this account. As an incentive

    to such an allottee, he will not be charged any interest on his balance instalments

    till the possession is formally offered by the HSIIDC on completion of minimum basic

    amenities. However, in case of any default in payment of instalments on due dates,

    interest @ 13% p.a. will be charged on the amount of default for the period of

    default, compounded half yearly;

    viii) As regards existing allottees who have been allotted industrial plots/sheds before

    coming into force of EMP-2015, any additional price of the plot/shed, as a

    consequence of enhancement in compensation that has been/may be awarded by

    the Court(s) in any matters/cases arising out of the acquisition proceedings or any

    incidental or matters connected thereto, shall be payable by the allottee in lump-

    sum within 60 days from the date of issue of demand notice without any interest. In

    the alternative, the allottee shall have the option to make the payment on account

    of enhanced cost in ten half-yearly equal instalments due on 30th June & 31st

    December, with interest @ 11% p.a. on the balance amount outstanding. Default in

    payment of instalments shall entail interest @ 13% p.a. for the defaulted period on

    the defaulted amount, compounded half yearly (The amendments in this clause are

    applicable w.e.f. 16.06.2016);

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    ix) In the Enterprises Promotion Policy 2015, announced by the State Government, a

    decision has been taken that no enhancement will be charged in respect of

    industrial plots/sheds to be allotted by HSIIDC in future. HSIIDC was mandated to

    formulate a suitable scheme in this regard;

    Accordingly, the allottees who are allotted plots after coming into force of EMP-

    2015 shall not be imposed proportionate enhancement in respect of the

    enhancement orders passed by the courts after the date of issuance of RLA in their

    favour. However, the existing allottees who have been allotted plots before coming

    into force of EMP-2015 shall be required to pay enhanced cost on proportionate

    basis as per the terms and conditions of their allotment against enhancement in

    land compensation awarded/to be awarded by the competent courts;

    x) The allottee shall get the conveyance deed executed in his/her/its favour with in

    one year of making payment of full price of the plot/shed, including enhanced cost,

    after clearance of all types of dues of the Corporation. In case of failure to do so,

    the execution of conveyance deed shall attract payment of stamp duty on the value

    of the property calculated at the prevailing collector rate in case the same is higher

    than the allotment rate plus applicable enhanced cost. In the existing cases where

    full cost of the plot/shed including enhanced cost, if any, has been deposited, the

    allottees can get the conveyance deed executed by 30.06.2017 after clearance of

    all types of dues of the Corporation, as per existing practice and thereafter the

    revised provision of payment of stamp duty shall be applicable. It is clarified that

    conveyance deed in favour of the allottee can be got executed through registered

    GPA of the allottee.

    Note: In case the plot is allotted under the NRI/PIO categories, funds towards the price of the plot should come from his/ her NRE account/ remittances from abroad/ foreign exchange.

    3.7 Processing Fee

    a) For allotment of plot

    The applicant shall be required to deposit application on-line along with the non-

    refundable processing fee as hereunder:

    Size of Plot (Sq. mtr.) Category ‘A’

    Estates

    Category ‘B’

    & ‘C’ Estates

    Up to 500 Rs. 5,000/- Rs. 3,000/-

    501-1050 Rs. 7,500/- Rs. 5,000/-

    1051-4050 Rs. 10,000/- Rs. 7,500/-

    4051-8100 Rs. 15,000/- Rs. 10,000/-

    8101 and above Rs. 25,000/- Rs. 15,000/-

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    b) For all other services

    Processing fee for other services, where ever payable as per EMP-2015, shall be

    charged at following rates:

    Category of Estate Processing fee

    A Rs. 10,000

    B & C Rs. 5,000

    Note: The processing fee will be inclusive of service tax, if applicable

    3.8 Service Sector Enterprises

    Considering the importance of service sector enterprises, it has been decided to allow

    activities of service sector enterprises directly providing services to the manufacturing

    enterprises. The following services which support the manufacturing activities in industrial

    estate/IMTs shall be eligible for allotment of industrial plots:

    1 Repair, Maintenance and parking of machineries/equipment used for industrial activities

    2 Industrial/Technical Test lab

    3 Industrial photography

    4 Bulk courier services

    5 Weigh bridge

    6 Blue printing/drawing/computer designing facilities/drafting facility/CAD-CAM

    7 Research & Development in any field

    8 Tool room for facilitation of industry

    9 Media houses, printing, publishing services

    10 Industrial kitchens/catering services

    11 Engineering & Design services

    12 Repair & maintenance, servicing of vehicles without any provision of showroom/ display of new vehicles

    13 Skill Development Centers

    Up to 25% of the industrial plots may be earmarked by HSIIDC for service sector enterprises

    in its industrial estates, at its sole discretion.

    3.9 Allotment of plots on leasehold basis in Mega Food Park, Phase-III, Barhi

    The allotment of plots on leasehold basis in Mega Food Park, Phase-III, Barhi under the

    norms of Mega Food Park Scheme of Ministry of Food Processing Industries, Govt. of India shall be

    governed by the following terms and conditions:

    i) Allotment under lease hold basis shall be governed under the Mega Food Park Scheme alongwith the provisions of Estate Management Procedures (EMP-2015) of HSIIDC with regard to extension, timely implementation of the project, transfer etc. as applicable in case of regular allotment of plots/sheds, except for those norms for which specific clause/norms have been mentioned.

    ii) The land/shed shall be allotted on lease hold basis on payment of Land Premium equivalent to the tentative cost of the plot/shed i.e. prevailing allotment rate of HSIIDC for the said Phase/Estate. The initial lease period shall be ten years. The allottee will be eligible to get

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    it converted to freehold after completion of lease period of ten years on payment of nominal charges, subject to the lessee having remitted entire outstanding dues and compliance of the terms of allotment of plot.

    iii) The Land Premium shall be payable in 8 half yearly instalments with applicable interest thereon. In case of default in making payment of instalments on due date, applicable interest shall be charged on the amount of default for the period of default, compounded half yearly.

    iv) Yearly economic lease rentals @Rs. 2.50 per sq. mtr., per annum effective from the date of allotment on lease hold basis with an increase of Rs. 1/- per sq. mtr., on an annual basis shall be charged.

    v) The lease rentals shall be payable on annual basis; with first lease rental payable within 30 days of commencement/date of lease and payable on similar pattern for subsequent years; failing which penal interest with half yearly compounding shall be applicable.

    vi) The industrial plot shall continue to be utilized for the approved project and shall be governed by any norms prescribed by the Ministry of Food Processing Industries (MOFPI), Govt. of India, under the Mega Food Park Scheme (MFPS). In case of discontinuance of the said project, the lease deed shall be terminated.

    vii) Maintenance charges shall be payable by the lessee on actual basis. The charges for electricity, water, sewer etc. shall borne by the lessee. Service tax etc. wherever applicable shall be payable by the lessee.

    viii) The lessee shall execute lease deed with the Corporation containing the terms and conditions mentioned as at the time of allotment under lease hold basis alongwith other conditions. The lease period shall commence from the date of conveying the allotment of industrial plot on lease hold basis and obligation and labilities under lease agreement shall be deemed to have commenced from that date.

    ix) The Corporation reserves the right to cancel the deed and terminate the allotment, disconnect the water supply and forfeit the amount of lease rentals remitted on account of non-adherence of Estate Management Policy Guidelines of the Corporation.

    x) All the expenses towards the registration of lease shall be borne by the lessee.

    xi) The period for fulfilment of all obligations/conditions qua the implementation of the project etc. by the lessee shall be as per the terms applicable for the regular allottee under EMP-2015 guidelines.

    xii) The original lease deed where land Premium equivalent to the plot cost has been paid, may be allowed for mortgage.

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    Chapter 4

    Offer of Possession

    4.1 An ‘offer of possession’ means that the Corporation makes an offer of physical possession

    of the plot/site to the allottee. The Corporation would offer the site(s) for physical

    possession after it has completed the basic infrastructure facilities comprising of (i) a

    motorable access road to the site, (ii) water supply system i.e. availability of water

    connection at site for construction & drinking purpose; (iii) Sewerage disposal Network;

    (iv) Electrical Infrastructure comprising of the Distribution system network for construction

    purpose; and (v) Provision of security service in the Estate, and made these facilities

    available at site in respect of the plots for which the possession is offered so as to enable

    the allottee to start construction of building for the project. It would be in order to offer

    the possession of plots in an estate in parts or in a phased manner. (The amendments in

    EMP with respect to basic infrastructure facilities to be provided before offer of possession

    shall be applicable for estates to be planned/developed in future i.e. after 08.03.2017).

    4.2 Before a decision is taken to offer the possession in an estate, a Committee comprising of

    the concerned Estate Manager, IA In-charge, IPD In-charge, one Independent Director and a

    representative of the Industrial Association (in case of new Estates, where there is no

    Association, a representative of the association of adjoining estate may be associated) shall

    certify the availability of primary level infrastructure facilities.

    4.3 On completion of the above exercise, the Estate Manager shall obtain the Zoning Plan in

    respect of each plot from the Infrastructure Planning Division (IPD). Thereafter:

    i) The concerned Estate Office of the HSIIDC shall offer possession of industrial plots

    to the allottees by way of a formal communication at the correspondence address

    given by the allottee. Letters for ‘offer of possession’ shall be issued by

    registered/speed post / email in order to track the delivery of the communication

    to the addressee;

    ii) The offer of possession shall be accompanied with a copy of the ‘Zoning Plan’ as

    applicable to the said category of plots;

    iii) An allottee can represent against the ‘offer of possession’ within a period of 30

    days of the issue of offer letter in case his plot is not free from all encumbrances or

    absence of the provision of basic amenities, along with the supporting

    documentary/ visual evidence;

    iv) On receipt of any such representation, a representative from the Estate office shall

    visit the site, preferably along with the allottee or his representative, within 7

    working days and submit a report to the Estate Manager, who will take an

    appropriate decision, by a reasoned order, accepting or rejecting the grounds of

    representation. In case the representation is found to contain merit, the Estate

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    Manager will direct the offer of possession to be held in abeyance till the deficiency

    is addressed and rectification is carried out and allow all consequential benefits to

    the allottee. He shall simultaneously fix the responsibility for wrongful offer of

    possession made in the first instance. The offer of possession shall be revived as

    soon as the cause of suspension thereof is rectified.

    4.4 Consequences of ‘Offer of Possession’ by the HSIIDC:

    i) Once the Estate office has offered the possession of plots, the allottee shall be

    liable to pay interest @ 11% p.a. on the unpaid balance amount of the tentative

    price of the plot;

    ii) Any default in payment of instalments in time shall entail payment of delayed

    interest @ 13% p.a. on the amount of default for the period of default, compounded

    half yearly;

    iii) The period allowed for completion of each stage of the project and final

    implementation of the project shall count from the date of ‘offer of possession’.

    4.5 Suo Moto request for Physical Possession

    i) There may be cases where an allottee is in a hurry to establish his project due to

    his business commitments and he is not in a position to wait for the completion of

    the basic minimum infrastructure facilities. The allottee can request for taking

    physical possession of the site at an early stage in such cases, i.e. before

    completion of basic infrastructure amenities. In such an event, he assumes the risk

    of undertaking execution of his project and meets all consequential costs on this

    account. Based on this clear understanding, the Estate Manager may allow physical

    possession of the plot to the allottee upon receipt of a request from him to this

    effect and facilitate provision of the Zoning Plan;

    ii) As an incentive to such an allottee, interest shall not be charged from him on the

    outstanding amount till such time the Estate Office formally offers the possession

    on completion of basic infrastructure facilities; but in case of any default in

    payment of instalments on due dates, interest @ 13% p.a. will be charged on the

    amount of default for the period of default, compounded half yearly. Further, the

    period for fulfilment of all obligations/conditions qua implementation of the

    project by the allottee shall count from the date of formal offer of possession of

    the plot by the Corporation after completion of basic infrastructure facilities.

    Note: The amended provisions of clause 4.5 of EMP-2015, under the head “Offer of Possession” shall be

    applicable for cases where the possession is yet to be offered by the Corporation. However, in the case of existing allottees, who have already taken suo-moto possession without formal offer of possession by the Corporation, no extension fee shall be charged in future till primary level infrastructure facilities are completed.

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    Chapter 5

    Period Allowed for Completion of the Project

    5.1 The allottee shall be required to complete the project on the industrial plot within a period

    of three years from the date of offer of possession of the plot.

    5.2 The period for completion of the project beyond the initial period of three years would be

    deemed extended on payment of prescribed extension fee through on-line mode for a

    further period of three years on year to year basis.

    5.3 In case of sheds/flatted factories, the allottee shall be required to complete the project

    within two years from the date of offer of physical possession of shed/flatted factory by

    HSIIDC. The period for completion of the project beyond the initial period of two years

    would be deemed extended for a further period of three years on year to year basis on

    payment of prescribed extension fee through on-line mode.

    5.4 The allottee shall be required to pay the extension fee, wherever permissible, at the

    rate(s) prescribed for that area and the payment shall be due with effect from the date the

    extension is applicable and for any delayed payment, interest @ 11% p.a. shall be charged

    on the amount due for the delayed period.

    5.5 The extension beyond six years (five years in case of shed/flatted factory) shall be granted

    by the Estate Manager on year to year basis by charging fee equivalent to double the fee

    applicable for the previous year.

    The allottee shall apply for extension in the prescribed format indicating various steps

    taken by him towards implementation of the project along with payment of applicable fee.

    The Estate Manager shall convey his decision with regard to the extension within 30 days. In

    case no reply is received by the allottee within the prescribed time, the extension shall

    deem to have been granted by the HSIIDC.

    5.6 Extension fee shall be charged at following rates:

    Sr. No.

    Category of Estate Plots (in Rs. per sq. mtr.)

    1st Year 2nd Year 3rd Year

    1 Category ‘A’ 75 150 250

    2 Category ‘B’ 40 80 150

    3 Category ‘C’ 15 30 50

    In case of shed, the extension fee shall be payable on the area of the plot under shed.

    However, in case of flatted factory, extension fee shall be payable on the plinth area basis.

    5.7 Completion of Project (General/NRI/FDI/Persons with Disability Category):

    An industrial project would qualify the criteria for completion in the following manner:

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    a. Construction norms:

    For the purpose of completion of the project, the allottee shall be required to

    construct the building having minimum construction coverage as under:

    i. Up to the size of one acre : 25% of the PCA (4050 sq. mtr.) ii. Above one acre up to five acres : 20% of the PCA iii. Above five acres : 15% of the PCA

    The Permissible covered area (PCA) as applicable for different industries as per the

    norms of Town and Country Planning Department, Haryana/ HSIIDC shall be

    adhered.

    b. Installation of Plant & Machinery and implementation:

    The unit has gone into commercial production after installation of plant and

    machinery to the extent of at least 30% of the value prescribed for allotment of

    plot. Further, where the allottees have already implemented the projects under

    the previous policies applicable from time to time, their cases shall not be re-

    opened.

    5.8 Project Implementation and project completion for the Plots allotted under on-going

    scheme - Guidelines regarding prestigious projects involving investment of Rs.50/40/30 Crore (earlier Rs.30/20/10 crore) and Mega Projects:

    i. A separate standard of performance is expected in the case of plots allotted under

    the prestigious/mega category. Such projects shall be monitored in two parts i.e.

    (a) completion of the project and (b) part completion of the project, as under:

    a. Completion of project:

    The project shall be considered as complete after the allottee has started

    commercial production, after obtaining occupation certificate as per minimum

    construction norms as mentioned in clause 5.7(a) and has made fixed capital

    investment in the project to the extent of at least 75% of the projected fixed

    capital investment, subject to minimum benchmark investment, as applicable at

    the time of allotment/execution of agreement.

    b. Part completion of project:

    The project shall be considered as partly completed provided the allottee has

    started commercial production, after obtaining occupation certificate/part

    occupation certificate with construction coverage at least to the extent of 50% of

    the minimum construction coverage norms and after installation of plant and

    machinery as stated in the project report for 1st phase of the project or to the

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    extent of at least 30% of total value of plant & machinery for the project as a

    whole, as stated in the project report, whichever is lower.

    ii. Period allowed for completion of project:

    The allottee shall be required to complete the project on the industrial plot within

    a period of three years from the date of offer of possession. Extension for

    completion of project can be considered in these cases with extension fee as

    applicable in the case of general allotment. (The amendment in this clause shall be

    applicable for allotments made on or after 16.06.2016)

    iii. In case the allottee has partly completed the project as per clause 5.8(i)(b), no

    extension fee shall be required to be paid by the allottee for completion of project

    till the sixth year. In case the allottee fails to complete the project within six

    years, he shall be liable to pay extension fee for 7th year onwards at the rates

    applicable for general category plots, for each year of delay or part thereof.

    iv In case the allottee of the industrial plot under prestigious project category intends

    to lease out a part of the premises, after part completion of the project as stated

    in clause 5.8(i)(b) above, the same may be allowed by the Committee under the

    Chairmanship of Administrative Secretary of the Industries Department, Govt. of

    Haryana, considering merits of the case.

    v. Exit route for allottees of prestigious project category:

    In case, the allottee has implemented/partly completed the project but is not in a

    position to complete the project within the stipulated period and intends to exit

    the scheme, the fee/penalty will be payable in the following manner:

    Sr. No.

    Investment achieved *Fee/ Penalty ( as % of current allotment price

    Min. Construction norms achieved

    Min. Construction norms not achieved

    i) Above 25% but up to 50% of proposed investment

    30% 35%

    i) Above 50% but up to 75% of proposed investment

    25% 30%

    ii) Above 75% but less than the minimum investment of Rs. 50/40/30 crore (earlier Rs. 30/ 20/ 10 crore), as the case may be

    15% 20%

    * or double the normal fee, as applicable for transfer of plot, whichever is higher. Service tax as applicable shall be payable extra. Upon payment of the above mentioned penalty, the project shall be treated as general category project and shall be considered to have been completed subject to fulfilment of minimum construction coverage norms.

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    Note:* All pending applications, received before coming into force of EMP-2015,

    shall be considered to have been filed on 16.10.2015 i.e. the date of implementation of EMP-2015 and shall be dealt under the provisions of EMP-2015.

    As per amendments in EMP effective from 08.03.2017, the category of allotment for prestigious projects has been done away with for future allotments. However, the provisions of clause 5.8 shall continue to remain effective for allotments already made under prestigious projects category.

    5.9 Project Completion Certificate

    It will be obligatory on the part of the original allottee to obtain ‘Part Completion

    Certificate’ / ‘Project Completion Certificate’ as the case may be from the concerned

    Estate Manager which will be conclusive evidence with regard to part

    completion/completion of the project. For this purpose, the allottee shall:

    i. Submit an application to the concerned Estate Manager within 15 days of part

    completion/completion of the project along with any three of the following documents:

    1. Copy of receipt of any taxes (Excise or VAT) paid; 2. Copy of customs Shipping bill; 3. Proof of payment of electricity bill for industrial connection; 4. Copy of receipt of PF/ESI paid; 5. Copy of first raw material purchase bill & sale/job-work bill; 6. List of machinery installed with certified copies of machinery purchase

    bills; 7. CA certificate of investment made in the project; 8. Copy of workers’ attendance register & wages payment record;

    The documents as above shall be in respect of the unit set up on the plot bearing

    the plot address

    ii. Upon receipt of request from the allottee as above, the Estate Manager shall

    inspect the Unit or cause the same to be inspected by a team of his officers within

    a period of 15 days with prior intimation to the allottee & preferably in the

    presence of the applicant/allottee. The inspection report shall be got duly

    countersigned from the allottee along with photographs/videography of the site;

    iii. The Estate Manager shall issue the ‘Part Completion Certificate’ / ‘Project

    Completion Certificate’ within 30 days of receipt of application, where the

    allottee’s claim is found to be in order after verification of the information

    provided by the allottee. In case no reply is received by the allottee within the

    prescribed period of 30 days, the ‘Part Completion Certificate’ / ‘Project

    Completion Certificate’ shall be deemed issued;

    iv. In case, the Estate Manager is not satisfied with the claim of the applicant-allottee

    with regard to part completion/completion of the project, the request for issuance

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    of part completion / Project Completion Certificate shall be declined in writing

    within 30 days of the receipt of application, clearly stating the reasons for such

    rejection.

    v. For the purpose of issuance of Part Completion / Project Completion Certificate,

    reliance shall be made upon the Part Occupation Certificate/Occupation

    Certificate, the documents prescribed under clause 5.9.i above and the site

    inspection as provided above.

    vi. Upon issuance of Part Completion / Project Completion Certificate, the allottee

    shall be expected to file an annual information with the Corporation with regard to

    performance of the unit viz annual turnover, export turnover, employment in the

    unit, taxes paid, products manufactured etc. in the prescribed format to facilitate

    future planning of HSIIDC/State Government.

    5.10 Building plans and Occupation Certificate

    The provisions of building plans and occupation certificate of the Haryana Building Code

    2017 shall be implemented by HSIIDC in the following manner:

    i. The building plans shall be got certified by the allottee from an empanelled

    Architect before starting any construction activity on the plot. The building plans

    must be as per the technical provisions of zoning plan and Haryana Building Code-

    2017 & regulations of Town and Country Planning Department, Haryana. A copy of

    the building plans duly certified by the empanelled Architect must be filed by the

    allottee in the office of concerned DTP/STP, HSIIDC before start of construction

    activity. No acknowledgement of the same shall be required to be issued by the

    office of concerned DTP/STP HSIIDC.

    ii. Before occupying the building, the allottee shall obtain the occupation certificate

    of the building from an empanelled Architect and shall submit a copy of the same in

    the office of concerned DTP/STP, HSIIDC within 15 days.

    iii. The concerned DTP/STP shall get such occupation certificate verified any time

    thereafter but not later than two months of its submission with prior intimation to

    the allottee and preferably in the presence of the allottee. In case any violation of

    the building byelaws/zoning regulations is observed, the same shall be brought on

    record by the DTP/STP alongwith photographs thereof within 48 hours of

    inspection. The allottee shall have the right to file an appeal before MD/HSIIDC

    within thirty days of such reporting. In case, the appeal is decided against the

    allottee, the compoundable violations shall be compounded by charging

    compounding fee at double the normal rate and non-compoundable violations shall

    have to be compulsorily rectified by the allottee.

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    iv. In old cases when obtaining occupation certificate was not mandatory as per the

    terms & conditions of allotment, the same shall not be insisted for various service

    requests. In all such cases, the allottees shall be given a window of six months to

    obtain the same under self-certification from an empanelled architect and submit a

    copy thereof to the Corporation, without levying any penalties for delay in

    obtaining occupation certificate.

    5.11 Minimum construction coverage norms in old cases

    The existing allottees who were allotted plots on or after 07.01.2008 shall also be eligible

    to avail the revised minimum construction coverage norms as mentioned in clause 5.7(a).

    As regards, the other allottees who were allotted plots prior to 07.01.2008 and obtained

    occupation certificate as per the then applicable norms and their terms of allotment, shall

    be considered to have fulfilled the minimum construction norms notwithstanding the norms

    prescribed in EMP-2015.

    The Board of Directors in its 329th meeting held on 21.09.2015 had formulated an amnesty

    scheme to grant extension in time for completion of project with envisaged investment to

    the allottees of Prestigious category Projects who were allotted plots on or before

    30.09.2008. Notwithstanding the provisions of extension to prestigious category projects, in

    this chapter, the amnesty scheme approved by the Board of Directors shall be applicable in

    those cases qua the rates of extension fee.

    Note: The amendments in this Chapter shall be applicable from the date of approval by

    the Board in respect of relevant provisions, unless otherwise specified.

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    Chapter 6

    Surrender/ Resumption of Plots/ Sheds

    6.1 Surrender of Plots/ sheds:

    a. i. Keeping in view that a number of factors impact the establishment of a

    business in a dynamic business environment, it is recognized that the plans for

    establishment of a business may undergo a change and the allottee may review and

    reconsider his plans to carry on with the establishment of the intended business. In

    such situations, the allottees will have the option to surrender the plots/sheds

    allotted to them at any point of time. In such an eventuality, the payment

    deposited by the allottee towards the price of the plot including interest and penal

    interest, if any, deposited by the allottee on instalments, would be refunded,

    without any interest by the Corporation, after deducting 10% of the price of the

    plot. In addition to the above, maintenance, water/sewer charges, in default, if

    any, shall also be deducted from the refundable amount.

    *In case of surrender of the plot either due to death of the allottee or before offer

    of possession by the HSIIDC or the HSIIDC is not in a position to offer possession of

    the plot free from encumbrances or offer alternate similar plot to the satisfaction

    of the allottee, the refund would be made without any deduction. Further, along

    with surrender request, the allottee shall submit details of his bank account for

    payment through electronic mode. However, it is clarified that the provisions for

    refund on surrender of plot without any deduction shall not be applicable in the

    cases of allotment of industrial plots without offer of possession, where the

    allottee has either taken over possession of the plot suo-moto without any formal

    offer of possession by the Corporation or surrender is made at a stage where the

    infrastructure is complete and the Corporation is in the process of formally offering

    physical possession of the plot.

    *The cases decided in the past where request has been received by the Corporation

    before implementation of these amendments (effective from 16.06.2016), shall not

    be re-opened.

    ii. The request of the allottee for reduction in size of the plot shall

    tantamount to surrender of part plot and on such portion, surrender charges as per

    EMP-2015 shall be applicable. After deducting such surrender charges from the

    amount deposited, the balance amount (including interest & delayed interest) shall

    be adjusted against the cost of changed smaller size plot and revised schedule for

    payment of balance cost shall be conveyed to the allottee.

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    iii. There shall be no provision for surrender of plots/sheds for future

    allotments. In respect of already allotted plots/sheds, the allottees shall have an

    option to surrender the plot/shed till 31.12.2017 and thereafter, no request for

    surrender of plot/shed shall be entertained. (Clause 6.1.a.ii & iii shall be

    applicable w.e.f. 08.03.2017).

    b. The procedure regarding surrender of plots/sheds will be as follows:

    The allottee will submit his request for surrender of the plot/shed to the concerned

    Estate Manager along with complete details of payments made to the Corporation

    towards the price of plot/shed, who will process the case and refer the same to

    Head Office within a period of fifteen days, along with a copy of ledger account of

    the allottee and status of dues towards maintenance/water/sewer charges, for

    refund of the amount in accordance with the guidelines under para 6.1(a) above.

    6.2 Resumption of Plots/ Sheds

    a. The plots/sheds allotted by the Corporation are liable to resumption in the

    following circumstances:

    i) Non-payment of the dues of the Corporation towards the price of the plot/shed,

    enhanced cost, extension fees, transfer fees, leasing fee or any other penalties

    imposed on account of any compoundable violations, or the O&M charges/other

    dues;

    ii) Violation of any other terms and conditions of allotment.

    b. In the event of any or all of the above conditions existing, the Estate Manager shall

    issue a notice to the allottee for rectification of the breach/ violation within a

    period of one month. In case the allottee does not take the corrective action within

    the said prescribed period, the Estate Manager shall forward the case, along with

    his recommendations/comments, to the Head Office of the Corporation for

    appropriate action in the matter. Upon receipt of any such reference from the

    Estate Manager, the Estate Division at the Head Office shall issue a final notice to

    the allottee at his last known address, by registered post/ speed post/ e-mail, to

    show cause as to why the plot should not be resumed. The allottee may be given a

    maximum of up to 30 days’ time to respond to the show cause notice. Thereafter,

    the Managing Director or his duly authorised representative may grant him an

    opportunity of personal hearing, if requested by the allottee in his reply/

    representation. The MD shall, thereafter, proceed with the passing of an

    appropriate order. A copy of the order shall be endorsed to the concerned Estate

    Manager with directions to take back possession of the plot/shed, if the plot/shed

    is ordered to be resumed.

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    c. Upon resumption of a Plot/ built-up premises/shed, the allottee would be entitled to

    refund of the amount deposited towards the price of the plot/shed including interest and

    penal interest, if any, deposited by the allottee on instalments, without any interest by the

    Corporation, after deducting 10% of the price of the plot/shed. In addition to the above,

    maintenance, water/sewer charges, in default, if any, shall also be deducted from the

    refundable amount. Such refund shall be made by the Corporation after getting possession

    of the plot/shed back from the allottee, free from any encumbrances. In cases where the

    plot is resumed along with the structure constructed thereon, the allottee shall be at

    liberty to remove such structure from the plot at his own cost within a reasonable time of

    three months, failing which the same shall vest with the Corporation and the allottee shall

    not be entitled to any compensation in lieu thereof.

    6.3 Restoration of Resumed Plots

    a. An appeal against the order of resumption passed by the Managing Director shall lie

    before the Appellate Committee headed by the Administrative Secretary of the

    Industries Department and MD/Haryana Financial Corporation & Director of

    Industries, Haryana being other members of the Committee. Such Appeal shall be

    made within ninety days of passing of resumption order in the office of

    Administrative Secretary of the Industries Department.

    b. The Committee may examine the appeal and also grant an opportunity of personal

    hearing to the appellant. The Committee may pass appropriate orders on the

    appeal after considering all the facts and circumstances of the case while following

    the principles laid down in the EMP.

    c. The Appellate/Anomaly Committee constituted under clause 6.3(a)/12.13 of EMP

    shall have sole discretion to offer re-allotment of plot/shed at the current rate of

    allotment in all the estates, considering merits of each case. In such cases, the

    amount paid by the allottee towards price of the plot including interest and penal

    interest deposited by the allottee on instalment(s), if any, shall be adjusted against

    the revised price of the plot at current rate, after deducting maintenance,

    water/sewer charges etc.; and the allottee shall be allowed fresh three years’

    period for completion of project in such cases. However, no interest shall be paid

    by the Corporation on the payments deposited by the allottee, while carrying out

    the adjustment of payments received in the past.

    6.4 Procedure in cases pursuant to the completion of the project:

    Once the allottee has completed his project as per the criteria laid down in para 5.7/5.8,

    the Corporation shall always be supportive of his peaceful enjoyment of the property

    subject to continued adherence to the terms and conditions of allotment and subject to the

    condition that he does not indulge in any activity listed under para 6.2(a) of the EMP.

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    Chapter 7

    Leasing / Renting of Premises constructed on Industrial Plots/Sheds

    7.1 Leasing of the premises constructed on industrial plots/sheds will be allowed for

    permissible activities in order to ensure optimum utilisation of the built-up industrial space

    subject to the condition that the allottee has obtained the occupation certificate from an

    empanelled Architect and submitted a copy of the same to the concerned DTP/STP of

    HSIIDC (except in case of prestigious category projects, where leasing shall be permissible

    after part completion/project completion). The allottee once allowed to lease out his

    premises under the previous policies can continue to lease out the premises. Leasing of

    Industrial Plots as such (i.e. where a building has not been constructed thereon) will not be

    permitted. The following service sector activities shall also be eligible for leasing of

    premises on industrial plots:

    1 Repair, Maintenance and parking of machineries/equipment used for industrial activities

    2 Industrial/Technical Test lab

    3 Industrial photography

    4 Bulk courier services

    5 Weigh bridge

    6 Blue printing/drawing/computer designing facilities/drafting facility/CAD-CAM

    7 Research & Development in any field

    8 Tool room for facilitation of industry

    9 Media houses, printing, publishing services

    10 Industrial kitchens/catering services

    11 Engineering & Design services

    12 Repair & maintenance, servicing of vehicles without any provision of showroom/ display of new vehicles

    13 ATM

    14 Documentation/typing centres/STD/ISD/Tele printer/Fax/Internet facilities for industries

    15 Renting/leasing of industrial/construction equipment

    7.2 With a view to giving impetus to the technical training/ skill development for meeting

    requirement of skilled manpower for the industry in Haryana, leasing of industrial

    premises to technical training /skill development centres providing hands on training on

    industrial machines, leading to capacity build-up for the industrial sector shall be

    permissible, subject to prior written permission of the Corporation.

    7.3 In order to be eligible for leasing, the allottee/applicant should have obtained the

    occupation certificate in respect of the premises from an empanelled Architect and

    submitted a copy of the same to the concerned DTP/STP of HSIIDC (Part Completion

    Certificate/Project Completion Certificate in case of prestigious category projects). The

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    plots/sheds on which project has been implemented by any of the allottee(s)/ lessee(s),

    shall also be eligible for leasing. Further, lease instruments exceeding 11 months’ period

    should be registered as per legal requirements.

    7.4 Leasing Fee and Processing Charges:

    i. The leasing fee will be @ 50% of the normal transfer fee applicable for the plot area,

    and shall be chargeable only once in respect of the plot/ premises irrespective of the

    period of lease and the number of leases. In case of shed, the leasing fee shall be

    payable on the area of the plot under shed. However, in case of flatted factory,

    leasing fee shall be payable on the plinth area basis. The leasing fee shall be payable

    on the basis of FAR availed in the following manner:-

    FAR availed Leasing fee payable

    Up to 125% Leasing fee rate x plot area

    Above 125% & up to 150% Leasing fee rate x Plot area x 150 125

    Above 150% & up to 175% Leasing fee rate x Plot area x 175 125

    Above 175% & up to 200% Leasing fee rate x Plot area x 200 125

    Above 200 & up to 250% Leasing fee rate x Plot area x 250 125

    ii. In case of bigger size plots of two acres and above, where the allottee had not

    availed complete FAR (125%) and leases out a part of the building, the formula for

    charging one time leasing fee for such allottees of industrial plots shall be as under:

    a. Plot area : _____ sq. Meters

    b. %age built-up area : Built up area/plot area x 100

    c. Leased out plot area : 100 / %age of built up area x leased out built up area d. Leasing fee to be paid : Leased out plot area x rate of applicable leasing fee

    iii. No leasing fee shall be charged in cases where premises is leased out to a

    concern/firm owned by the original allottee/his family members with minimum 51%

    share, subsidiary or holding company of the allottee company or a firm/ company

    owned by original promoters of allottee firm/company. Further, no leasing fee shall

    be payable in case the premises is leased out, after running the industrial unit on

    the plot/premises by the original allottee/subsequent allottees, combined

    together, for a period of five years or more. Wherever, the leasing fee (excluding

    interest and penalty) equal to 50% of the current transfer fee or more has already

    been paid in the past in respect of that plot/shed by the present allottee/ earlier

    allottee(s), under previous EMPs, no fresh leasing fee would be payable now. In

    other cases, the allottee will be required to pay the difference between the

    amount due under this policy and the amount already paid.

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    No leasing fee shall be charged in cases where conveyance deed has been

    executed in favour of the allottee. Wherever leasing fee is not payable for first

    leasing, the allottee shall be required to pay the applicable processing fee.

    However, for subsequent leasing/change of lessee/ extension of lease period, no

    leasing/processing fee shall be payable where conveyance deed has been

    executed or fee equivalent to one time leasing fee as per clause 7.4.i/7.4.ii,

    wherever applicable, has been received by the Corporation in the past.

    iv. The Leasing Fee, wherever applicable, would become due from the effective

    date of lease. Payment of Leasing fee/processing fee shall have to be made

    along with request for first leasing permission. Interest @ 11 % p.a. shall be

    payable on the due amount from the due date till the date of payment.

    7.5 Number of permissible leases:

    There shall be no limit/ restriction on the number of leases permissible in any premises

    subject to the condition that the premises is leased out only for the permissible activity

    and meets the normal safety conditions.

    7.6 Procedure:

    i) First Leasing:

    The allottee, after fulfilling the eligibility criteria as defined in clause 7.3 above,

    shall be at liberty to lease out the premises for permissible activities conforming to

    that area and shall file an intimation thereof with the concerned Estate Manager

    within 30 days of such leasing, along with payment of prescribed leasing

    fee/processing fee.

    ii) Second/Subsequent Leasing:

    For second/subsequent lease or change in lessee, no permission is required from

    the Corporation. The allottee shall submit the requisite information pertaining to

    second/subsequent lease or changed lessee, preferably within 15 days of such

    change.

    iii) In case the first lease was allowed without charging any leasing fee, in favour of a

    concern/firm owned by the original allottee/his family members with minimum 51%

    share, subsidiary or holding company of the allottee company or a firm/ company

    owned by original promoters of allottee firm/company as per clause 7.4(iii), for

    subsequent lease in favour of a third party, the allottee shall be liable to pay one

    time leasing fee as defined under clause 7.4(i)/7.4(ii).

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    iv) The allottee shall file an annual certificate/return, by 30th April each year in the

    prescribed format as under:

    Sr. No.

    Particulars Remarks

    1 No. of units operating at site

    2 Name of the units

    3 Products being manufactured

    4 Turnover of the previous FY (Rs. in Cr. For each unit)

    5 Export turnover of the previous FY (Rs. in Cr. For each unit)

    6 Employment in each unit – Haryana domicile Outsiders

    7.7 Consequences of un-authorised leasing

    i) A premises is deemed to have been leased out unauthorisedly if the allottee:

    a) Leases out his premises or part thereof without complying with the

    eligibility criteria as defined in the EMP.

    b) Leases out the premises for an activity which is not permissible.

    ii) In case of any instance of unauthorised use/leasing of premises, the allottee will be

    given a period of three months, with a provision for one more extension of three

    months (a maximum of six months) to discontinue the lease/ rectify the breach. In

    case the allottee fails to comply with the directions so issued, the Corporation will

    take recourse to resumption of the plot. Additionally, the allottee will be liable to

    pay leasing fee at three times the normal fee as penalty for compounding the

    violation during such period. In case of commercial use of the premises, the penalty

    shall be six times the normal leasing fee rate.

    iii) Further, overall compliance of the terms and conditions of allotment of the plot

    will be the responsibility of the Allottee qua the HSIIDC and the Corporation will

    not enter into any correspondence with the lessee on this account.

    Note: The amendments in this Chapter shall be applicable from the date of approval by

    the Board in respect of relevant provisions, unless otherwise specified.

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    Chapter 8

    Transfer of Plots/ Sheds

    8.1 Notwithstanding that the plots/sheds are allotted by the HSIIDC on free-hold basis, the

    allotment/ management of the industrial estates are being regulated by the Corporation

    with the sole objective of industrialisation in the State of Haryana. To meet this end, the

    allotment of industrial plots/sheds is made to the prospective entrepreneurs for setting up

    their industrial ventures, after following due procedure, involving inviting applications,

    evaluation on the basis of pre-determined criteria, personal interviews in case of

    prestigious category projects and thereafter selection of the applicant. As such, the

    allottee is required to utilise the plot/shed by implementing the industrial project within a

    stipulated period. To that extent, the expression ‘Free-hold’ is restrained by the attendant

    conditions.

    8.2 What constitutes a Transfer?

    A plot/shed allotted by the HSIIDC amounts to transfer in the following circumstances:

    i) In case of individual allottees, there is a change of ownership, by whatever means,

    i.e. through a sale deed, an agreement with the intent of transfer on a future date,

    or by way of Power of Attorney (except in favour of family members);

    ii) In the case of Partnership Firms and Limited Liability Partnerships (LLPs), there is a

    change in the partners whereby the majority stake (51% or above) gets transferred

    in favour of third party through exit of any of the partner(s) at the time of

    allotment and /or induction of new partner(s) and the share of the original

    remaining partner(s) is diluted below 51%;

    iii) In the case of Public/Private Limited Companies, there is a change in the

    promoters/directors whereby the majority stake (51% or above) gets transferred in

    favour of third party through exit of the shareholders at the time of allotment and

    /or induction of new shareholders and the share of the original remaining

    shareholders is diluted below 51%;

    iv) In the case of a Listed Company, where the shareholders having largest

    shareholding as well as management control have changed their hands;

    v) In the case of a Government Company, the change in ownership through dis-

    investment of shareholding of 51% or more or by way of divestment;

    vi) In case of Merger/ Amalgamation/ Take-over of the allottee company, consequent

    upon the orders of the Competent Court/Central Govt., where the majority stake

    of the equity shareholders/ management control gets transferred in favour of third

    party.

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